The Litecoin market had a back-and-forth session on Wednesday as we are sitting at the 50-day EMA. Ultimately, this is a market that is trying to build up enough momentum to break out to the upside, but I do not necessarily think that we are going to do it right now. Crypto is starting to turn the corner, but these things do tend to take time. The reality is that the $125 level continues to offer a bit of resistance, but if we can break above there it would be a very strong sign for Litecoin.
I believe that most of what you are going to see is a situation where Bitcoin leads the way, with the biggest crypto having an outsized influence on everything else. We are obviously going to struggle with the 50-day EMA, but moving averages only provide so much in the way of dynamic support or resistance. If we do break above the $125 level, then it is possible that we could go looking towards the $150 level over the long term.
It is more likely than not that we see a little bit of a pullback towards the $115 level or so in order to build up a bit of momentum, or perhaps even as low as the $100 level. If we were to break down below the $100 level, then this market will break down rather significantly, opening up the possibility of a move much lower. I do not necessarily see that happening quite yet, but anything is possible considering that there has been so much in the way of downward pressure for so long.
When I look across the crypto world, it does seem like we are coming back to life, so that of course is a good sign. The overall attitude of the markets continues to be erratic, but with stock markets bouncing the way they have, it seems that traders are starting to step out on the risk spectrum in order to benefit from price action. Litecoin certainly is far out on the risk spectrum, so the better off than some of the more traditional assets do, the better off Litecoin will do. Ultimately, if you are a longer-term investor, this is a place of accumulation. However, if we break that $100 level, things get ugly quick.
